UKHospitality has called on the Government to use the forthcoming Budget to ensure that supplier businesses receive the “necessary” financial support.
The UK’s hospitality sector supply chain is facing devastation with 324,000 jobs at risk unless businesses receive immediate financial support from the Government, according to new research from UKHospitality.
The trade body’s Supplier Alliance research said one in five jobs in the supplier workforce have already been lost, with the workforce now just 82% of February 2020 level. One in three businesses have received no Government grants or loans.
Without support, UKHospitality says two in five businesses will have to close, with one in five facing insolvency, with 324,000 redundancies “likely.”
Hospitality venues, the research noted, will need to return to 59% of normal trading levels to make supplier services viable.
UKHospitality has called on the Government to use the forthcoming Budget to ensure that supplier businesses receive the “necessary” financial support, which they say includes a national grant fund for the hospitality supply chain and a Government-backed invoice factoring scheme to free-up funds for investment and mitigate some of the risk of trading through the restart.
“The totality of hospitality is dependent on its supply chain. If supplier businesses fail, then the entire sector grinds to a halt and we are at risk of the whole thing collapsing. We are hopeful that hospitality businesses can lead the recovery of the UK’s economy this year. That cannot happen if businesses are not supplied to do the job. The supply chain is everything and it must be supported,” UKHospitality Chief Executive Kate Nicholls said.
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